The foundation for studying the economy is studying the behavior of the individuals within the economy. Four principles of economics focus on how people make decisions: people face trade-offs; the cost of something is what you give up to get it; rational people think at the margin, and people respond to incentives.

Imagine that you are considering starting your own business. Please share what you think would be some of the trade-offs involved. Consider the full opportunity cost of running your business. In addition to any inputs you must pay for, might there also be a broader opportunity cost involved in using your own resources, such as time and money, in your new business?

Please post your example and analysis by replying to this Discussion.